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Microeconomics
Decrease in price from R50 to R40 causes quantity demands to increase from 2500 to 3000.using sex elasticity of demand ,the price elasticity of demand is
Microeconomics
Find the equilibrium of L and K subject to a given output:
minimize cost: C=40K+20L subject to Q=60LK = 3000
minimize cost: C=40K+20L subject to Q=60LK = 3000
Microeconomics
A decrease in price from R50 to R40 causes the quantity demanded to increase from 250p to 3000 units. Using the arc elasticity of demand, the price elasticity of demand is...
Microeconomics
Find the equilibrium of L and K subject to a given output:
Minimize cost: C = 40K+ 20L Subject to Q = 60 L K= 3000
Sir please solve this question
Minimize cost: C = 40K+ 20L Subject to Q = 60 L K= 3000
Sir please solve this question
Microeconomics
Auto-Vehicles Ltd. estimates the monthly demand (Q) for its product is given by the equation log Q = 1.00 - 1.50 log P + 3.00 log / R2 = 0.21 (1.20) (-2.50) (0.02) where P is price and / is income per capita in thousands of rupees. The f-statistics are shown in parentheses and logarithms to the base 10 were used to transform the equation. Assume that estimates are generated by sample of 400 observations.
a. Rewrite the expression as a multiplicative demand equation.
b. Based on the equation, is the product an inferior good, a necessity, or a luxury good?
c. Is the equation likely to be useful in predicting demand for Motorland’s product? Why or why not
a. Rewrite the expression as a multiplicative demand equation.
b. Based on the equation, is the product an inferior good, a necessity, or a luxury good?
c. Is the equation likely to be useful in predicting demand for Motorland’s product? Why or why not
Microeconomics
Data from 20 cities were used to estimate the demand for face-lifts. The resulting regression equation was Qd = 50.000 - 0.001P + 0.002/ R2 = 0.55 (5.42) (-2.34) (2.00) where Qd is face-lifts per 1,000 population per year, P is the price in rupess,I is income in rupees, and the t-statistics are shown in parentheses.
( a) In determining statistical significance of the coefficients, what number should be used for degrees of freedom ?
( b) which of the coefficients are statistically significant at the 5 Percent level ?
(c) The mean value of P and I are Rs. 5,000 and Rs. 20,000, respectively. compute the point price elasticity of demand.
(d) what is the predicted demand at the mean values of the independent variables?
( a) In determining statistical significance of the coefficients, what number should be used for degrees of freedom ?
( b) which of the coefficients are statistically significant at the 5 Percent level ?
(c) The mean value of P and I are Rs. 5,000 and Rs. 20,000, respectively. compute the point price elasticity of demand.
(d) what is the predicted demand at the mean values of the independent variables?
Microeconomics
The MacWend Drive-In has determined that demand for hamburgers is given by the following equation:
Q = 205.2 + 23.0A - 200.0PM + 100.0PC + 0.5I
(1.85) (2.64) (-5.61) (2.02) (4.25)
where Q is the number of hamburgers sold per month (in 1,000s), A is the advertising expenditures during the previous month (in $1,000), PM is the price of MacWend burgers (dollars), PC is the price of hamburgers of the company's major competitor (dollars), and I is income per capita in the surrounding community (in $1,000). The t-statistics for each coefficient is shown in parentheses below each coefficient.
(A)Are the signs of the individual coefficients consistent with predictions from economic theory? Explain.
(B). If A = $5,000, PM = $1, PC = $1.20, and I = $20,000, how many hamburgers will be demanded?
(C). What is the advertising elasticity at A = $5,000?
Q = 205.2 + 23.0A - 200.0PM + 100.0PC + 0.5I
(1.85) (2.64) (-5.61) (2.02) (4.25)
where Q is the number of hamburgers sold per month (in 1,000s), A is the advertising expenditures during the previous month (in $1,000), PM is the price of MacWend burgers (dollars), PC is the price of hamburgers of the company's major competitor (dollars), and I is income per capita in the surrounding community (in $1,000). The t-statistics for each coefficient is shown in parentheses below each coefficient.
(A)Are the signs of the individual coefficients consistent with predictions from economic theory? Explain.
(B). If A = $5,000, PM = $1, PC = $1.20, and I = $20,000, how many hamburgers will be demanded?
(C). What is the advertising elasticity at A = $5,000?
Microeconomics
The arc advertising elasticity is 1.5 as advertising expenditures of Rs. 12 Lakhs, what will demand be at an advertising expenditure of Rs. 10 lakhs?
Microeconomics
Q. Consider the demand equation, Qx = 150 - PxP0 where the subscripts x and o refer to two different goods.
a. For this equation, write the expression for the point price and cross elasticities of demand as function of Px and P0.
b. what is the relationship between the price and cross elasticities ?
a. For this equation, write the expression for the point price and cross elasticities of demand as function of Px and P0.
b. what is the relationship between the price and cross elasticities ?
Microeconomics
Write-Right, a vertically integrated firm produces both paper and writing tablets. The demand for tables is given by PT = 1.00 – 0.001Q where Q is the quantity of tablets. The marginal cost of producing the paper necessary for tablet is MCP = 0.20 + 0.001Q It costs the firm $0.10 to make the paper into a writing tablet. If there is no external market for the paper, what transfer price should top management set for the paper?
